After pulling out `Nano' small car project out of Singur, Tata Motors has evoked a new controversy at its new home in Gujarat, with accusations flying from the opposition parties about the ''unprecedented'' sops given by the Modi government  to Tatas for bringing the project to Sanand amid fierce competition from Karnataka and Andhra Pradesh.

The Congress party which raised the controversy has now demanded a `white paper' on the agreement signed by the Modi government and Tata Motors as the deal lacked transparency and the state government has failed to announce the details of deal with Tata. (See: Congress plays Trinamool in Gujarat; challenges Nano deal) 

The Modi government has brushed aside the information sought under the Right to Information Act by the Congress party and the media and is hiding from disclosing details citing `confidentiality' which Tata Motors have demanded due to competition.

A note prepared for the state cabinet's approval detailing sops offered to Tata Motors and doing the rounds in Gujarat on Monday revealed that apart from giving loan of Rs9,570 crore at a nominal interest rate of 0.1 per cent with deferred repayment for 20 years, a whole gamut of other concession have been provided to Tatas.

The Modi government gave 1,100 acres of land in Sanand, nearly 25 km west of Ahmedabad, on the land of Anand Agriculture University (AAU). The AAU had 2,220 acres of land at the site, which has been transferred to the state government.

The land was given with all the necessary permissions and clearances at a rate of Rs900 per sq metre which works out to Rs400.65 crore and will be paid by Tatas in 8 annual installments at a compounded interest of 8 per cent per annum with a moratorium of two years.

The Modi government waived off the Rs26.5 crore which was payable by Tatas on stamp duty, registration charges and transfer fee for conversion of agricultural land to non-agricultural purpose.

The government loan of Rs9,570 crore is divided into two parts of Rs2,900 crore and Rs6,670 crore each. Tatas will be given Rs2,900 crore for setting up the Nano plant which also includes the relocation cost of Rs700 crore from Singur to Sanand.

The other Rs6,670 crore will not be given to the company but will be spent by the Modi government for providing infrastructure like developing roads and railway lines, gas pipelines, effluent treatment plant, electricity, water as well as providing an additional 100 acres at a later stage on the outskirts of Ahmedabad to build a township for employees.

The government will provide a two or four-lane road which connects to the project site. It will also lay a natural gas pipeline and supply 200-kva power to the plant apart from supplying 14,000-cubic metre of water each day and an effluent treatment plant for waste disposal.

The government has also promised to develop a facility known as Tansportnagar on a public-private partnership basis which will be for loading/unloading and lodging and boarding.

The loan of Rs9,570 crore with minimum interest comes with riders on VAT where the Tatas will have to shell out Rs375 crore per year on a presumed production capacity of 2.5 lakh cars per annum at a rate of 15 per cent VAT which is levied on sale of cars in Gujarat which works out to Rs7,500 crore on the loan period of 20 years.

Gujarat Congress chief Siddharth Patel although not opposing the deal like Mamata Banarjee did at Singur, said ''it is a complete sellout and will not be acceptable to the people of Gujarat.''

The leak of the confidential note has angered the chief minister who has ordered a high level inquiry and has refused to comment on the authenticity of the note.

Congress leaders allege the inquiry launched by Modi goes to prove that the note with the leaked information is `authentic'.